Facts:

The case involves Johnlo Trading Company as the petitioner and Jose C. Zulueta, the Judge of the Court of First Instance of La Union, along with the Northern Luzon Stevedoring Union as respondents. The events leading to this case began on June 24, 1950, when the Northern Luzon Stevedoring Union filed a complaint against Johnlo Trading Company in the Court of First Instance of La Union. The complaint sought to collect the amount of P4,211.58, which represented excess tonnage stevedored under a contract for the handling of demilitarized scrap ammunition shells owned by Johnlo Trading Company at the port of San Fernando, La Union. The summons for Johnlo Trading Company was served on Charles T. Balcoff, who was claimed to be its representative in the Philippines. However, Johnlo Trading Company did not appear or respond to the complaint, leading the court to declare the company in default upon the plaintiff's petition. Subsequently, the court allowed the plaintiff to present ...

Facts:

1. Contractual Dispute: On June 24, 1950, Northern Luzon Stevedoring Union filed a case against Johnlo Trading Company in the Court of First Instance of La Union for the collection of P4,211.58. This amount represented excess tonnage stevedored by the plaintiff under a contract for the demilitarization of scrap ammunition shells in San Fernando, La Union.

2. Service of Summons: The summons for Johnlo Trading Company was served on Charles T. Balcoff, who was claimed to be the company's representative in the Philippines. No one appeared or answered the complaint on behalf of Johnlo Trading Company.

3. Default Judgment: The court declared Johnlo Trading Company in default and allowed the plaintiff to present evidence. On October 3, 1950, the court rendered a judgment ordering Johnlo Trading Company to pay P4,211.58.

4. Execution of Judgment: On November 4, 1950, a writ of execution was issued. The sheriff of Manila served a notice of garnishment on the Department of Economic Coordination, which owed money to Johnlo Trading Company.

5. Challenge to Jurisdiction: J. A. Wolfson, a creditor of Johnlo Trading Company, filed a pleading on November 9, 1950, suggesting that the judgment be set aside due to lack of proper service of summons. The request was denied.

6. Petition for Certiorari: Johnlo Trading Company filed a petition for certiorari, arguing that Charles T. Balcoff was not authorized to receive legal process on its behalf, and thus, the court lacked jurisdiction over the company.

Issue:

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Ruling:

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Ratio:

1. Agency and Representation: The court found that Charles T. Balcoff acted as a representative of Johnlo Trading Company in the Philippines, and thus, the service of summons on him was valid under Section 14, Rule 7 of the Rules of Court.

2. Jurisdiction Over Foreign Entities: The court rejected the argument that Johnlo Trading Company could evade jurisdiction by not designating an authorized agent in the Philippines. It held that the company's engagement in business in the Philippines necessitated the appointment of a representative for legal purposes.

3. Equity and Fairness: The court emphasized that it would be inequitable to allow a foreign corporation to benefit from business activities in the Philippines while avoiding legal obligations by claiming lack of jurisdiction.

4. Alternative Remedies: The court noted that the remedy of serving summons by publication under Section 17, Rule 7 of the Rules of Court was not applicable in this case, as the action did not involve personal status or property within the Philippines.